FTSE 100 Edges Up in Cautious Trade Before US Jobs Data
0916 GMT - The FTSE 100 edges up 0.1% to 7006.95 as traders
cautiously await key U.S. jobs data. A weaker-than-expected figure
may add to speculation that the U.S. Federal Reserve could soon
slow or pause interest-rate rises, whereas a stronger reading would
increase risks of aggressive increases. "Stocks in Asia headed
lower overnight, taking their lead from a tough session in the
U.S., where the bullish move of the early part of the week faded
thanks to ongoing nervousness about the direction of Fed policy and
the usual pre-non farm payroll nerves," IG analysts write. Property
stocks fall on growing concerns about a weakening housing market
outlook, with Berkeley Group down 2% and Rightmove down 1.8%, while
energy stocks gain as crude oil prices rise.
(jessica.fleetham@wsj.com)
Companies News:
SolGold Agrees to Merger With Cornerstone Capital Resources;
Shares Rise
Shares in SolGold PLC rose Friday after the company said it has
agreed to buy the entire issued share capital of Cornerstone
Capital Resources Inc. in a unanimously recommended friendly
merger, valuing Cornerstone at around 96.7 million pounds ($107.9
million).
---
J.D. Wetherspoon Swung to Pretax Profit in FY 2022 as Pandemic
Restrictions Eased
J.D. Wetherspoon PLC reported a swing to pretax profit in fiscal
2022, driven by easier comparatives after the ease of Covid-19
restrictions, and said that its outlook is cautiously
optimistic.
---
Castings Sees Strong Demand in 1H; Expects to Meet Market
Views
Castings PLC said Friday that underlying demand in the first
half of fiscal 2023 remained strong, and that it is confident it
will continue to meet market views.
---
PureTech Health in Takeover Discussions With Nektar
Therapeutics
PureTech Health PLC said Friday that it is in takeover
discussions with Nektar Therapeutics, speaking in response to press
speculation.
---
Steppe Cement 3Q Revenue Rose on Higher Sales Volumes,
Prices
Steppe Cement Ltd. said Friday that revenue for the third
quarter rose along with the volume of cement sales and prices.
---
Marshalls Nine-Month Revenue Fell at Landscape Products
Division
Marshalls PLC said Friday that in the nine months to Sept. 30,
revenue at its landscape products division fell 6% amid tough
trading conditions, but that group revenue rose as demand at its
building products division remained strong.
---
Impax Asset Management Group FY 2022 Assets Under Management
Fell
Impax Asset Management Group PLC said Friday that assets under
management at the end of fiscal 2022 were lower than a year
earlier, but that it recorded positive net inflows during the
fourth quarter.
Market Talk:
Reckitt Needs a New CEO as Soon as Possible, RBC Says
0924 GMT - Reckitt's Interim Chief Executive Officer Nicandro
Durante knows the group well, but the company needs a permanent CEO
as soon as possible, RBC analysts James Edwardes Jones and Emma
Letheren say in a research note. The consumer-goods company's new
leader should be an internal appointee, given that Durante's
executive experience is in the tobacco industry--as CEO of British
American Tobacco--a sector where volume growth, marketing, and
research and development are not the norm, the analysts highlight.
"We're sticking with outperform (rating), but feel some anxiety
about this management uncertainty," they add.
(michael.susin@wsj.com)
Castings Shares Look Cheap on Strong Demand
0922 GMT - Castings' 1H update was positive and provided
reassurance that demand is strong and it is meeting full-year
expectations, Canaccord Genuity says. Against a backdrop of strong
customer demand, order visibility and production schedules, the
iron-casting and machining group's earnings look well supported by
proven pricing mechanisms and foundry volumes, Canaccord analyst
James Wood says in a research note. "Given the demand outlook,
normalized production schedules, ongoing cash generation and strong
balance sheet support, we view the 60% discount to sector
[comparisons] as unjustified," Wood says. Canaccord retains its buy
rating and 530 pence price target on the stock. Shares are down 11%
at 310.0 pence. (joseph.hoppe@wsj.com)
Potential UK Housing Market Downturn Seen as Risk to Pound
0841 GMT - The potential fallout from the U.K. government's new
fiscal policy on the housing market could add to sterling's woes,
ING says. Chancellor of the Exchequer Kwasi Kwarteng held talks
with the bosses of U.K. banks on Thursday about soaring mortgage
rates, triggered by expectations that the Bank of England will have
to raise interest rates more aggressively following the
government's mini-budget which included sweeping tax cuts,
according to media reports. "A potentially fast acceleration in the
U.K. housing market correction has surely become a more relevant
theme for the government, and likely another downside risk for the
pound," ING analyst Francesco Pesole says in a note. GBP/USD rises
0.3% to 1.1210 and EUR/GBP drops 0.2% to 0.8754.
(renae.dyer@wsj.com)
J.D. Wetherspoon Shares Seen as Cheap
0840 GMT - J.D. Wetherspoon shares are up 12% after releasing an
encouraging performance update, providing a relief rally to a stock
that is down 55% year to date, Goodbody analyst Patrick Higgins
says in a research note. However, the British pub chain's stock
price seems to be cheap compared to historic levels, with an
expected price-to-earnings ratio of 8.5 for fiscal 2023, the
analyst says. The Irish brokerage has a buy recommendation on the
stock. (michael.susin@wsj.com)
J.D. Wetherspoon Seen Better Positioned Amid Current
Backdrop
0828 GMT - J.D. Wetherspoon released an update in line with
expectations and showed an encouraging start to the year, Goodbody
analyst Patrick Higgins says in a research note. The British pub
chain is believed to be better positioned to face the current
backdrop than peers, given its long-term hedging strategy and
attractive value proposition, Higgins says. "Nonetheless, it is
difficult to be overly constructive on the sector at the moment as
we see no clear catalyst for improvement in the near term given the
hugely uncertain macro and consumer backdrop," Higgins adds. Shares
rise 11%. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 07, 2022 05:43 ET (09:43 GMT)
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